Medical device company St. Jude Medical (STJ) will buy AGA Medical Holdings Inc (AGAM) for $1.3 billion, or $20.80 per share.

AGA Medical makes devices to treat heart problems through transcatheter treatments, St Jude Medical said today in a statement.

The deal "will create a clear leader in the structural heart market, making St. Jude Medical the only company with programs across all major categories," the statement said.

AGA Medical had sales of about $199 million in 2009. The deal should close by the end of 2010.